An information technology company is again seeking to build an aircraft hangar in Kirksville after a previous proposal was rejected in 2017. 

Onshore Technology Services LLC submitted a Request For Proposal in July seeking an interested partner in Moberly, Kirksville or Brookfield to provide financial assistance for the construction of a hangar that would be the base of operations for Onshore Technology Services and for Onshore Outsourcing, a company focused on providing IT training in rural areas. 

Members of Kirksville’s Airport and Transportation Commission discussed whether the partnership would make sense for the city at Tuesday’s ATC meeting. 

Onshore has requested that the city finance the hangar “because the city can get lower interest rates,” according to an ATC report on the proposal. If the plan moves forward, Onshore would lease the hangar long-term for the cost of the financing and then purchase the hangar for the remainder of the loan amount at the end of the long-term lease. 

“If your city is selected for this hangar, Onshore Technology Services will become a significant part of your jet fuel sales, injecting cash back into the city fund, while also providing job creation within your community,” the Onshore proposal read. 

In 2017, Onshore requested that Kirksville seek a grant to construct a hangar for which it would be the sole tenant and would pay for all utilities. ATC and city management declined this offer, and Onshore declined an offer to lease land at the Kirksville Regional Airport. 

ATC members said they would want more information before moving forward with the current proposal. The city has requested a detailed proposal from OTS including the proposed length of the loan repayment, but has not yet received a response. 

 Public Works Director Glenn Balliew said the proposal is currently being reviewed by the city’s attorney. 

Finance Director Lacy King said she is currently consulting with assessors to determine whether the agreement could adversely affect the city’s finances. The cost of the project could decrease the city’s borrowing power, King said. 

Balliew said the city would also need more information about the company. While it shares the same address and a similar name to Onshore Outsourcing, which would use the hangar, they are different companies. 

“I don’t know what that business plan looks like,” Balliew said. 

ATC members were said they were also skeptical of the plan, which would place the financial burden of constructing the hangar on the city if Onshore were to go out of business. ATC chair Randy Smith said he had discussed the proposal with Onshore Outsourcing employees, but had never before heard of Onshore Technology Services Aircraft Holdings LLC, the company the city proposed entering a lease agreement with.

The estimated total cost of the hangar is $396,000. However, the ATC report noted that this cost did not include “concrete, site prep, engineering, utilities, heating, prevailing wage, access road/parking lot cost, additional security fencing, etc.” 

“I think it’s, personally, a risk too high,” Balliew said. 

The Commission agreed to table the proposal until more precise information was made available by OTS. 

In other business, the Commission discussed current construction on Illinois Street, which is expected to be completed by the end of September and come in under budget, and on Cottage Grove’s box culvert, which continues to run behind schedule but is expected to be completed by Sept. 15. 

Balliew also gave the ATC an update on the new fuel system the Kirksville Regional Airport plans to construct next year. A grant to fund 95 percent of the project’s cost has been accepted by the City Council. Balliew said the new fuel tanks should prevent problems with leakage and last for at least 50 years.